Coconut imports to fill gap of exporting products market
The Sri Lankan government will be importing stocks of coconut kernels in a bid to assist the thriving coconut export market in the wake of increased global prices for the product. The authorities believe that there is a mafia that is controlling the increased prices in the domestic market.
Coconut Development Authority (CDA) Chairman Shantha Ranatunga told The Sunday Times Business that a Cabinet paper has already been prepared which will give authority for exporters to import any amount of stocks of coconut kernels as required with no restriction on quantity.
At the moment in the world market, coconut producing countries are fetching very good demand and good prices due to low production and this applies even for the desiccated coconut segment as well, he said.
In this respect, with the Sri Lankan coconut industry currently facing a drop in production the government has proposed to import coconut kernels to be used by the milk and coconut powder manufacturing exporters, Mr. Ranatunga said.
He pointed out, “when imports are done then the coconut mafia will vanish,” as it is they who are involved in controlling the prices in the local market and exorbitantly increasing the rates in the retail market. Coconuts purchased at Rs.90-100 from the estates are sold at Rs.150-160 in the retail market.
He noted that in this respect he had requested the state estates participating at the Coconut Auction at the CDA to ensure they establish prices at Rs.105 at the auction. This is due to the fact that the authorities want to curb the middlemen from seeking an absolute profit.
Mr. Ranatunga said authorities will also ensure that farmers receive a subsidy on the fertiliser to help them purchase the necessary stocks to enable an increased production.
The subsidy will be provided by using the monies collected within the CDA account from the industry by allocating Rs.500 million from the Rs.1 billion available. This subsidy will be provided to small farmers by granting Rs.60,000 – 65,000 per acre plot of land with about 50 trees.
Coconut Growers Association President Chryshantha Jayawardena said the industry is still reeling from the after effects of the fertiliser ban imposed several years back.
In addition, the white fly disease and the fact that this a low production period has resulted in a shortage of coconut available in the market.
It was also pointed out that due to the issues faced in the cultivation of this crop most people have moved away from growing coconut in addition to the fact that the subsidies previously allocated were removed that resulted in farmers being compelled to purchase stocks at relatively high prices.
| Use packeted powdered, liquid coconut | |
| The Coconut Development Authority (CDA) wants consumers to increasingly purchase fresh coconut milk sold in tins and coconut powder in packets. CDA Chairman Shantha Ranatunga said that more than 60 per cent of coconuts are consumed domestically and in a bid to reduce the waste they propose that housewives blend the grated coconut using a blender. “We encourage use of coconut milk and poder manufactured by the factories.” Next week plans are underway to carry out promotional programmes encouraging the use of coconut based products available in the market like coconut milk, powder and cream; and the use of blenders to avoid waste. |
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